NOK remains under pressure, sell EUR/SEK – Danske Bank

Senior Analyst at Danske Bank Sverre Holbek noted the perspectives for the Norwegian krone.

Key Quotes

“In terms of the Scandies, EUR/SEK and EUR/NOK continue to trade on a bid note with the former testing the Brexit morning highs while the NOK has suffered from a continued decline in the oil price”.

“While we generally like adding long-term NOK exposure on dips we still think global factors, the oil price and relative rates will remain negative for the Norwegian currency over the coming month”.

“On the other hand, we are reaching levels in EUR/SEK where fundamentals, valuation and technicals suggest limited upside potential and with positioning now much more balanced we like selling EUR/SEK from current levels”.